Sponsor by Innity

Sponsor by cwyeoh

Sponsor by Nuffnang

Tuesday, December 11, 2012

Sunway Berhad, formerly Alpha Sunrise Sdn Bhd, is engaged in two businesses: property and construction. Its other business divisions include quarry and building materials, trading and manufacturing, hospitality, leisure, and healthcare. It is a special purpose company formed for the acquisition of SunCity Business and the SunH Business. In its construction business, it offers designing and building services in the fields of building construction, civil engineering, infrastructure, mechanical and electrical engineering, machinery and site equipment rental, precast, foundation and piling, and stone materials. It owns 36.7% in Sunway real estate investment trust (REIT), which is managed by its subsidiary Sunway REIT Management Sdn Bhd. Sunway REIT owns a portfolio of retail and commercial properties. On November 3, 2011, it acquired Avenue Wisdom Sdn Bhd. On November 16, 2011, the Company announced that its wholly owned subsidiary, Sunway City Sdn Bhd, acquired Sunway Mall Sdn Bhd.

Revenue decreased 13% and also lower than preceding year corresponding quarter 7.2%, eps decreased 38.9% but higher than preceding year corresponding quarter 36%, cash generated from operating enough to cover financing expenses but still increase borrowings and spent 17.6% of Group cash to cover investing expenses, current assets maintain very high which can indicate good prospect in near future, operating margin improving to above 10%, liquidity ratio indicate enough to meet current obligation but cash level decreasing, gearing ratio indicate very high liabilities risk hence have to maintain high profit to mitigate the risk, all accounting of turnover period stiil acceptable range, higher inventory and property development cost normally bring higher income in future, most segment business still good

First Support Price

2.26

Second Support Price

2.17

Risk Rating

MODERATE

Research House

Affin Target Price

2.9 (2012-05-10)

OSK Target Price

3.31 (2012-05-30)

Kenanga Target Price

2.6 (2012-10-04)

HwangDBS Target Price

2.55 (2012-10-10)

CIMB Target Price

2.7 (2012-12-05)

ECM Target Price

2.7 (2012-12-05)

RHB Target Price

3.08 (2012-12-05)

TA Target Price

3.47 (2012-12-05)

AMMB Target Price

2.6 (2012-12-06)

HLG Target Price

2.93 (2012-12-10)

Maybank Target Price

2.54 (2012-12-10)

MIDF Target Price

2.7 (2012-12-10)

Accounting Ratio

Return on Equity

9.34%

Dividend Yield

-

Operating Profit Margin

12.24%

Net Profit Margin

16.43%

Tax Rate

22.75%

Asset Turnover

0.4263

Net Asset Value Per Share

2.57

Net Tangible Asset per share

2.31

Price/Net Tangible Asset Per Share

1.0

Cash Per Share

0.55

Liquidity Current Ratio

1.3943

Liquidity Quick Ratio

0.8637

Liquidity Cash Ratio

0.2685

Gearing Debt to Equity Ratio

1.4866

Gearing Debt to Asset Ratio

0.5765

Working capital per thousand Ringgit sale

28.7%

Days to sell the inventory

162

Days to collect the receivables

150

Days to pay the payables

233

Technical Analysis

SMA 10

2.308 (Uptrend)

SMA 20

2.305 (Uptrend 2 days)

SMA 50

2.317 (Uptrend)

SMA 100

2.283 (Same)

SMA 200

2.359 (Downtrend)

MACD (26d/12d)

0.001504 ( 0.002287 )

Signal (9)

-0.003767 ( 0.001318 )

MACD Histogram

0.005271 (Bullish trend 4 days)

Bolinger Upper Band

2.388

Bolinger Lower Band

2.222

My notes based on 2012 quarter 3 report (number in '000):-
- Lower revenue due to lower property sales and lower construction turnover after the elimination of intra-group construction billings due to in-house construction services deployed for some of the Group's property development projects

- Higher pbt than FY11Q3 mainly contributed by the stronger profit recognition from the property development in Malaysia and higher profit contribution from Australia and Singapore